Finance
In Michigan, a deed of trust differs from a mortgage in that a deed of trust:
ARequires a longer foreclosure process
BInvolves three parties (borrower, trustee, lender) instead of two✓ Correct
CIs only used for commercial loans
DDoes not create a lien on the property
Explanation
A deed of trust involves a borrower (trustor), a neutral third-party trustee, and a lender (beneficiary). Michigan is primarily a mortgage state (two-party instrument), but some Michigan transactions use deeds of trust.
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